When Long-Run Average Total Cost Is Constant as Output Increases,the

question 3

True/False

When long-run average total cost is constant as output increases,the firm has constant returns to scale.

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Definitions:

Economy-of-Scope

Economic efficiencies derived from variety, rather than volume, where producing a wider range of products can lead to lower average costs.

Economies of Scale

The cost advantage achieved when production becomes efficient, as the scale of the operation grows and the cost per unit of output decreases.

Real Estate Developer

An individual or company that builds or renovates buildings or land developments, managing the process from inception to completion.

Synergies

Refers to the combined effect of group efforts or operations that results in a greater impact or benefit than the sum of individual efforts.